A cracking trade

Oil refineries are cashing in after years of lacklustre profits

THIS week average petrol (gasoline) prices in America reached a new record of $3.10 a gallon, according to the Department of Energy. Drivers are up in arms and politicians are getting twitchy. Congress is even considering legislation against price-gouging. The culprit is not the oil price, which has hovered above $60 a barrel for months, well below last year’s record of $78. Instead the squeeze comes from a shortage of refining capacity. The difference between the price of the crude oil refineries buy, and that of the petrol they sell, has risen above $30 per barrel

A number of catalysts are converting refineries into mints. The most immediate factor is an unusually high number of closures for maintenance. Most refineries schedule repairs for the springtime before the summer